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Gold confirms bearish continuation
Gold managed to break out of its recent consolidation phase yesterday, with the price falling into a 16-month low. The break below $1205 is also important as that level represents the major low from July 2017.
However, most crucially, we have also moved away from the idea that we were gearing up for a period of upside following the break below the crucial $1236 double top neckline. With that in mind, the downside looks likely to continue, with any upside looking like an opportunity to sell gold. This bearish view holds unless we break above $1236 resistance.